SB 296

Project enumerations of in the Authorized State Building Program

Under current law, the Building Commission may authorize the design and construction of any building, structure, or facility costing in excess of $2,000,000, only if that project is enumerated in the Authorized State Building Program, which appears in each biennial budget passed by the legislature. This bill eliminates that enumeration requirement for the design phase of a project and provides that the construction of any building, structure, or facility may not be enumerated in the authorized state building program unless the building commission determines that at least 50 percent of the project’s design phase has already been completed.

Reports concerning modifications to building program projects

Under current law, the Building Commission has the authority to authorize limited changes in the program or budget of a building program project if the commission determines that unanticipated program conditions or bidding conditions require the change to effectively and economically construct the project. This bill requires that the Department of Administration submit a quarterly report to the Joint Committee on Finance and each voting member of the Building Commission that identifies each project for which the Building Commission has approved a budget increase and that identifies each project enumerated in the state building program for which DOA estimates a budget increase will be necessary for project completion, including a description of the reasons for the project budget shortfall.

Selection of project architects and engineers

Under current law, the secretary of administration is required to establish a committee for each construction project under DOA’s supervision, except certain emergency projects, for the purpose of selecting an architect or engineer for the project. If the estimated cost of a construction project is $7,400,000 or more, the selection committee must use a request-for-proposal process established by DOA to select an architect or engineer for the project based on qualifications. The bill raises that threshold to $15,000,000.

Single prime contracting

The bill creates a new exception to single prime contracting for high-dollar building projects. Single prime contracting is a process in which the state contracts only with a general prime contractor who then must contract with subcontractors. Under current law, whenever the Building Commission determines that the use of innovative types of design and construction processes will make better use of the resources and technology available in the building industry, the commission may waive certain requirements related to single prime contracting, if the action is in the best interest of the state and is approved by the commission.

Under the bill, for any project costing $200,000,000 or more, at the request of the agency for which the project is constructed, the Building Commission is required to waive certain single prime contracting requirements for the project, as requested by the agency.

Certain project bidding procedures

Under the bill, at any time more than two days prior to the end of the period during which bids may be submitted for a building project, a bidder or potential bidder may submit a question to DOA concerning the project. Additionally, the bill provides that DOA may issue addenda at any time during the bidding period to modify or clarify the drawings and specifications for the project being bid or to extend the bidding period.

Cooperation with energy conservation contractors

Current law authorizes DOA to contract with qualified contractors for the performance of energy conservation audits at state buildings, structures, and facilities and for the performance of construction work at a state building, structure, or facility for the purpose of realizing potential savings of future energy costs identified in an energy conservation audit. The bill requires DOA and the Board of Regents of the University of Wisconsin System to collaborate with energy service companies to identify and execute pilot projects using financing provided by the companies to upgrade facilities, reduce deferred maintenance, and increase sustainability.

Utilities costs

The bill provides that each state contract for construction work must state which party to the contract is responsible for paying project utility service connection charges and which party is responsible for paying for costs related to the consumption of utility services at the project site.

Actions against the state related to certain contract claims

Under current law, the Claims Board is required to receive, investigate, and make recommendations on all claims against the state of $10 or more that are referred to the board by DOA. The board is required to report its findings and recommendations on all claims referred to the board to the legislature. The board may deny a claim, directly pay a claim of up to $10,000, or recommend a payment in excess of $10,000 to the legislature. If the board concludes that a claim should be paid by the state and the board does not or may not directly pay the claim, current law requires the board to cause a bill to be drafted covering its recommendations. A claimant may commence a lawsuit against the state upon the refusal of the legislature to pass a bill allowing a claim.

The bill creates a timeline for the board to hear and make a final determination upon certain claims related to contracts and, in addition to current law, allows claimants to bring actions against the state related to certain contract claims if certain conditions are met. Under the bill, any claim referred to the board that relates to a contract with the Department of Transportation for transportation infrastructure improvement or that relates to a contract with DOA or the Board of Regents of the University of Wisconsin System that is awarded under current law for construction projects must be heard by the board, and the board must make a final determination on the claim, within six months from the day that the claim was referred to the board. If the board concludes that the facts of the claim would be more properly adjudicated in a court of law or if the board fails to make a final determination on the claim within six months from the date that the claim was referred to the board, the bill allows the claimant to commence an action against the state seeking judgment on the claim as provided under current law.

Transfer to the building trust fund

The bill transfers $32,000,000 from the general fund to the building trust fund in fiscal year 2024-25.